Poll: Does the current economic crisis make you more or less interested in buying coins?
RYK
Posts: 35,800 ✭✭✭✭✭
Over the years, I have read quite a few discussions here on what effect an economic downturn has had, should have, and will have on the coin market and collectors' buying activity. It is my opinion that every economic downturn is unique such that there is no cookie-cutter answer as to what will or should happen in the next one.
However, it is indisputable that we are amidst a significant economic downturn, and we have the capability to gauge how collectors are behaving in the current environment. Answers will undoubtedly vary based on the individual's job, savings, and housing circumstances, as well as mood, fear, greed, and overall sense of well-being.
The investor in me says that the value of most of my coins, especially the better ones, has held up quite nicely. It probably is time to take some money off the table. The collector in me says that I enjoy my coins and want more, but notes that the prices seem to be quite high. The collector wins most arguments (picture the little angel and devil on the shoulders in the movie Animal House
), so it looks like I will be continuing to buy coins where there seems to be reasonable value. 
After last night's sale of the Baltimore Collection of Liberty $20's, it does not seem to be $20 Libs!
However, it is indisputable that we are amidst a significant economic downturn, and we have the capability to gauge how collectors are behaving in the current environment. Answers will undoubtedly vary based on the individual's job, savings, and housing circumstances, as well as mood, fear, greed, and overall sense of well-being.
The investor in me says that the value of most of my coins, especially the better ones, has held up quite nicely. It probably is time to take some money off the table. The collector in me says that I enjoy my coins and want more, but notes that the prices seem to be quite high. The collector wins most arguments (picture the little angel and devil on the shoulders in the movie Animal House
), so it looks like I will be continuing to buy coins where there seems to be reasonable value. After last night's sale of the Baltimore Collection of Liberty $20's, it does not seem to be $20 Libs! 0
Comments
Edited to add: I wasn't buying much before...and I'm not buying much now.
I am not in the poor house but I just don't feel comfortable spending money on hobby items in a time of great economic
unheaval and uncertanity.
Coin collecting can be an interesting diversion but not essential to everyday living (yeah I know that sounds like heresy on a message
board like this but.......)
``https://ebay.us/m/KxolR5
<< <i>More interested in buying; but I have less money to buy with
Yep, Thats what I was going to Say!
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Those that are losing their jobs or worried about losing their jobs are almost surely cutting way back on coin purchases. Many of those folks are already gone from the forum and will not be here to respond, because they are done with the hobby for now. This is likely only a relatively small percentage of folks. However, as auction results often show, it is a sometimes only a handful of bidders that drive the price 10% to 50% higher. If those key folks are the ones cutting back, auction prices can effectively decline much more than the number of folks willing to bid.
<< <i>Many of those folks are already gone from the forum and will not be here to respond, because they are done with the hobby for now. >>
Many? Can you name even one person (using their forum ID) in this category?
``https://ebay.us/m/KxolR5
The Baltimore collection was very impressive—nearly an entire collection of Liberty Double Eagles, missing only the 1883 and 1861 Paquet. Most of the coins were in AU58 condition and many appeared to be high-end for the grade. Even the more common date Type 3’s were in AU58, but generally nice for the grade. I offered strong bids for 3 coins, but only ended as high bidder for one of them.
Interestingly, not a single double eagle sold for less than $977.50 even though gold spot was below $700 for a time on Friday.
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<< <i>Many of those folks are already gone from the forum and will not be here to respond, because they are done with the hobby for now. >>
Many? Can you name even one person (using their forum ID) in this category? >>
Occasionally someone posts about losing their job or serious health problems. I can't recall their IDs off hand. If you are that curious you can do a search, and find their IDs. Active posters and casual forum members drop off the forum all the time. I don't know for sure why they are gone, but economic problems might be a factor.
What is the point of your pointed question? Anyone unfortunate to have their house foreclosed on, is likely no longer collecting coins. Do you think otherwise? Do you think collectors are totally immune from lay offs, foreclosures or the like? Do you think that there are zero coin collectors that work in residential construction, or autos, banking, or other industries that are experiencing massive layoffs? I wrote that it is a relatively small percentage, but some of those hit are being hit very hard, some have a dim prospect of ever finding a job at the same pay and may have to start at the bottom in another industry.
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<< <i>
<< <i>Many of those folks are already gone from the forum and will not be here to respond, because they are done with the hobby for now. >>
Many? Can you name even one person (using their forum ID) in this category? >>
Occasionally someone posts about losing their job or serious health problems. I can't recall their IDs off hand. If you are that curious you can do a search, and find their IDs. Active posters and casual forum members drop off the forum all the time. I don't know for sure why they are gone, but economic problems might be a factor.
What is the point of your pointed question? Anyone unfortunate to have their house foreclosed on, is likely no longer collecting coins. Do you think otherwise? >>
Perhaps I misunderstood what you wrote initially. I thought you were saying that based on the current economic crisis many people had not only stopped buying coins, but also had completely given up on the hobby (including posting in the chatroom, etc).
Reason: I buy coins out of discretionary income and savings. As I see my (stock) investments being whittled away, I am less inclined to outlay money for a hobby.
<< <i>...
Perhaps I misunderstood what you wrote initially. I thought you were saying that based on the current economic crisis many people had not only stopped buying coins, but also had completely given up on the hobby (including posting in the chatroom, etc). >>
I think the word "many" may have caused confusion, it is "many" of the "few." The few are those unfortunate enough to be laid off or facing other severe economic hardships. The word many is a modifier on few, eg: many of those few that are facing hard times will leave the hobby or take an extended break.
For example, if someone posted a poll on this forum regarding having their house foreclosed, it is likely the response would be zero or close to it. Very few folks that have gone through that kind of event are still going to be active in the hobby, and actively posting on this forum. The lack of polling response would not mean that zero coin collectors experienced foreclosure. It means the sample is skewed towards active collectors and those that still have some money in their pockets.
NGC registry V-Nickel proof #6!!!!
working on proof shield nickels # 8 with a bullet!!!!
RIP "BEAR"
When they can't sell these coins, they'll go to auction, where because of high reserves, they won't sell, either. They will then be discretely sold to other dealers, where the cycle will continue. If these people want me to buy something, they are going to have to reduce their prices, or reduce the reserves at auction. Ie., I know for a fact that a major auction house barely broke even on a lot I was following at a recent auction.
"Seu cabra da peste,
"Sou Mangueira......."
"Bongo hurtles along the rain soaked highway of life on underinflated bald retread tires."
~Wayne
Im looking forward to some great buys in the stock market too.
Im buying stocks of my fav. companies and hope that yeilds hold.
I have a very positive outlook , maybe Im just NERO, but I think everything is going to be okay.
I think most people getting cought in foreclosure are not the coin collector type, and most have very little financial accume.
<< <i>Same as before. Other than having to listen to the idiots that caused it claim they are the solution to it, I have felt no pain. >>
Somewhat akin to an arsonist who just set a fire, responding with the fire department to put out the fire, I'd say.
'dude
<< <i>More interested. At least coins have some intrinsic value. Better than the funny money that is printed by the Feds >>
Of course the worth/value of those coins is measured in funny money dollars; LOL. I'd like to see you go to Wal Mart or wherever it is you shop and get out your pocket knife and whittle off $32.97 from your ms70 gold Buffalo coin.
and it sets us apart from practitioners and consultants. Gregor
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